About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Friday, February 24th, 11:50AM
rss
Latest Headlines

Don't dismiss KiwiSaver, advisers told

Advisers are being urged to think about KiwiSaver advice as a way to capture clients for the future.

Wednesday, October 26th 2016, 6:00AM

by Susan Edmunds

While KiwiSaver balances are growing, many advisers still regard the superannuation savings scheme as more trouble than it is worth.

Commissions range between about 0.15% and 0.25% of the client’s balance. The average balance is about $12,000.

But Richard James, chief executive of NZ Funds, said advisers could use KiwiSaver as a first step to a long-term relationship.

Advisers who worked with high income earners might find KiwiSaver was their only asset at present, but in the future that would change.

“I don’t think you should look at clients through a product lens but should look through a relationship lens,” he said.

“If you are a non-institutionally affiliated adviser it’s important to build a relationship with potential clients as early on in their wealth accumulation phase as you possibly can. It’s so much more difficult to build a relationship later on when they have already accumulated substantial wealth and have relationships in place. The banks will capture them, and independent advisers never will.”

Some advisers, such as Bill Raynel, of Investment Solutions Northland, are taking that longer-term view.

He said while he would only collect 0.2% of the balance, over hundreds of clients it would eventually add up. “It’s not a big earner. There is a lot of work involved and just as much compliance required for KiwiSaver as a large portfolio.”

But he said he made a conscious decision to focus on KiwiSaver from its start because the global financial crisis seemed to wipe out the next generation of lump sum investors coming through, who would traditionally have formed his client base.

“I saw a complete and utter lack of trust and confidence in the industry,” he said. “I didn’t know how long it would take to recover. KiwiSaver was something that people would be comfortable with. I’m using it to rebuild my client base across the age ranges instead of concentrating on older people with lump sums.”

He said if he could attract clients for a lifetime of advice, that would add longevity and value for the business over time.

Helping clients with Australian superannuation transfers had been particularly successful and was bringing in significant numbers of new clients, he said.

James said the key would be to attract the right type of client.  If someone could only ever manage the minimum contribution to KiwiSaver, they might not be worth the investment. “If the client can save substantially into KiwiSaver or beyond KiwiSaver, their wealth picture is broader and more complex. Those are the clients who are absolutely worth starting that relationship with, even if it’s only around KiwISaver initially.”

Tags: Commission KiwiSaver

« KiwiSaver advice sparks complaintsKiwiSaver bounces back »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Time for fundamental allocation rethink
    “All very good points Grant. If anybody would like to look at how this might impact retirement income please take a look at...”
    5 hours ago by Anthony Serhan
  • Time for fundamental allocation rethink
    “Not quite sure that he is advocating an active approach. What he is advocating is that perhaps basing an allocation on (lets...”
    6 hours ago by smitty
  • Time for fundamental allocation rethink
    “Trend and long-term investment perspectives have been drilled into so many "qualified" advisers and portfolio managers with...”
    6 hours ago by Chatterbox
  • Sales versus advice distinction 'lost'
    “just thinking aloud. advisers had been spending many years - unpaid hours of writing submissions and attending feedback...”
    7 hours ago by w k
  • Time for fundamental allocation rethink
    “What is sad, is the complete dismissal of an interesting paper (I suspect without reading it), and the myopic commentary...”
    7 hours ago by Pragmatic
Subscribe Now

News and information about KiwiSaver

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.69 4.89 5.29 5.49
ANZ Special - 4.39 4.79 -
ASB Bank 5.80 4.99 5.19 5.49
ASB Bank Special - 4.59 4.79 5.09
BankDirect 5.80 4.99 5.19 5.49
BankDirect Special - 4.59 4.79 5.09
BNZ - Mortgage One 6.25 - - -
BNZ - Rapid Repay 5.70 - - -
BNZ - Special - 4.59 4.79 5.09
BNZ - Std, FlyBuys 5.79 4.99 5.19 5.49
BNZ - TotalMoney 5.64 - - -
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 6.70 - - -
Credit Union Baywide 5.95 4.99 ▲5.25 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heretaunga Building Society 5.60 4.85 5.10 -
Housing NZ Corp 5.65 4.80 5.19 5.49
HSBC Premier 5.59 4.19 4.39 ▲4.89
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.60 4.39 4.69 4.99
Kiwibank 5.40 4.90 5.19 5.55
Kiwibank - Capped - - - -
Kiwibank - Offset 5.40 - - -
Kiwibank Special - 4.45 4.79 5.25
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 6.10 5.10 5.45 -
NZ Home Loans 5.65 4.90 5.19 5.55
NZ Home Loans - Specials - - - -
Lender Flt 1yr 2yr 3yr
NZ Home Loans - Specials - 4.35 4.79 5.09
Perpetual Trust 7.70 - - -
Resimac 5.30 4.86 4.94 5.30
SBS Bank 5.54 4.89 5.19 5.49
SBS Bank Special - 4.45 4.75 5.09
Sovereign 5.90 4.99 5.19 5.49
Sovereign Special - 4.59 4.79 5.09
The Co-operative Bank - Owner Occ 5.55 4.55 4.85 5.25
The Co-operative Bank - Standard 5.55 5.05 5.35 5.75
TSB Bank 5.65 4.80 5.15 5.45
TSB Special - 4.45 4.75 5.05
Lender Flt 1yr 2yr 3yr
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.65 4.99 5.19 5.49
Westpac - Capped rates - 5.15 5.25 -
Westpac - Offset 5.65 - - -
Westpac Special - 4.59 4.79 5.09
Median 5.69 4.85 5.12 5.38

Last updated: 17 February 2017 9:48am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com